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Accounting - Ch. 12 Payroll Taxes

Total questions: 72

Worksheet time: 1hrs 12mins

Name
Class
Date
1.
The total earnings paid to an employee after payroll taxes and other deductions
a)
gross pay
b)
net pay
c)
real pay
d)
deductions 
2.
A federal tax paid for old age, survivors, and disability insurance
a)
medicare tax
b)
social security tax
c)
unemployment tax
d)
deductions 
3.
A federal tax paid for hospital insurance 
a)
medicare tax
b)
social security tax
c)
unemployment 
d)
deductions 
4.
The period covered by a salary payment
a)
salary
b)
pay period
c)
payroll
d)
check
5.
Employee regular earnings are calculated as
a)
regular hours times regular rate
b)
total hours divided by regular rate
c)
total hours plus overtime rate
d)
overtime hours minus overtime rate 
6.
The information used to prepare payroll checks is taken from a payroll register. 
a)
True
b)
False
7.
Total earnings are sometimes referred to as gross pay.
a)
True
b)
False 
8.
The larger the number of withholding allowances claimed, the larger the amount of income tax withheld.
a)
True 
b)
False
9.
Each employee name is listed in a payroll register along with
a)
employee number.
b)
marital status
c)
withholding allowances.
d)
all of these.
10.
A state tax used to pay benefits to unemployed workers is
a)
social security tax.
b)
Medicare tax.
c)
unemployment tax.
d)
state unemployment tax.
11.
Which form tells an employer how much to deduct for taxes?
a)
W2
b)
W4
c)
1099
d)
1040
12.
What is the purpose of the form W4?
a)
It is used to show interest income.
b)
It is used to complete your yearly tax return.
c)
To help employers compute the amount of income tax to withhold
d)
It shows the date you were hired.
13.
What percent of gross pay is Medicare tax?
a)
it varies
b)
1.45%
c)
6.2%
d)
7.65%
14.
What percent of gross are payroll taxes (social security + medicare)?
a)
it varies
b)
1.45%
c)
6.2%
d)
7.65%
15.
What percent of gross pay is federal income tax?
a)
it varies
b)
1.45%
c)
6.2%
d)
7.65%
16.
The total amount of earnings before any deductions are taken out
a)
Gross Pay
b)
Net Pay
c)
After-tax Income
d)
Yucky Pay
17.
When is a W4 form filled out?
a)
When you file your taxes
b)
When you quit a job
c)
Right before you start a job
18.
Who is responsible for filling out a W4 form?
a)
You
b)
Your employer
c)
Your Bank
d)
The IRS
19.

What is net pay?

a)

The total earnings on your paycheck

b)

Three taxes that everyone must pay

c)

How much a person is worth in total

d)

The amount of your paycheck after taxes are taken out

20.

What is gross earnings?

a)

The total amount of wages on your paycheck

b)

Three taxes that everyone must pay

c)

How much a person is worth in total

d)

The amount of your paycheck after taxes are taken out

21.

What are the three taxes that everyone must pay from their paycheck?

a)

Federal income tax, state income tax and county tax

b)

Federal income tax, sales tax and Medicaid tax

c)

Federal income tax, Social Security tax, Medicare tax

d)

State income tax, Social Security tax and Sales tax

22.

What is Medicare tax for?

a)

It funds health insurance for retired Americans

b)

It funds Medicaid

c)

It funds health insurance for all Americans

d)

It funds health insurance for those who can't afford it under the Affordable Healthcare Act

23.

What is federal tax used for?

a)

It is used to fund federal infrastructure and programs

b)

It provides income to Americans in retirement

c)

It is used to fund state infrastructure and programs

d)

It funds health insurance to Americans in retirement

24.
A set amount of money paid to an employee each pay period is called
a)
salary
b)
wages
c)
commission
d)
overtime
25.
An amount paid to an employee based on a percentage of the employee's sales is
a)
salary
b)
wages
c)
commission
d)
overtime
26.
The total amount of money an employee earns in a pay period before deductions
a)
net pay
b)
gross pay
c)
book value
d)
overall wages
27.
The number of days or weeks of work covered by an employee's paycheck.
a)
pay day
b)
payroll
c)
paycheck
d)
pay period
28.
A record of the time an employee arrives and leaves each day is often kept on a 
a)
ledger card
b)
time manager
c)
clock document
d)
time card
29.
The overtime rate for work over 40 hours is generally __________ times the regular rate of pay.
a)
1
b)
1.5
c)
2
d)
2.5
30.
The taxes that MUST come out of every employee's paycheck are called
a)
required deductions
b)
voluntary deductions
c)
allowances
d)
FUTA
31.
Amounts subtracted from pay are called
a)
overtime
b)
taxes
c)
deductions
d)
commissions
32.
Employees state how many allowances they have on a form called
a)
1099
b)
Federal Tax Refund Form
c)
W-4
d)
W-2
33.
A separate record kept for each employee and all the pay they received throughout the year is
a)
payroll register
b)
employee earnings record
c)
W-4
d)
Employee pay stub
34.
The amount left after deductions are subtracted is called
a)
gross pay
b)
overtime
c)
commission
d)
net pay
35.
Overtime is paid when an employee works more than _____ hours a week
a)
20
b)
36
c)
40
d)
48
36.
What % is withheld from employees to pay for Social Security?
a)
1.45%
b)
3.75%
c)
5%
d)
6.2%
37.
What is the formula for calculating Overtime Pay?
a)
Regular pay x 2
b)
Regular pay x 1.5
c)
Regular pay x 3
d)
Regular pay / 2
38.
Federal income taxes are a progressive tax calculated on worker earnings in ______ states.
a)
several
b)
most
c)
all 50
d)
none of the 50
39.
Social Security and Medicare are called ___________ taxes because they are paid by the employee and the employer.
a)
double
b)
inconvenient
c)
collective
d)
matching
40.
When a business withholds taxes from an employee's earnings, the money is ultimately transferred to the state or federal government. Therefore the business "owes" the government this money so these deductions are _______________ until paid.
a)
LIABILITIES
b)
assets
41.

Payroll taxes withheld represent a liability for an employer until payment is made.

a)

True

b)

False

42.

A business form used to record details affecting payments made to an employee is a(n)

a)

Employee earnings record.

b)

Payroll journal.

c)

Employee accounts payable record

d)

Tax withholding form.

43.

The Accumulated Earnings column of the employee earnings record

a)

Shows net pay for the year.

b)

Is the total earnings since the first of the year.

c)

Shows net pay for one quarter.

d)

Is the gross earnings for one quarter.

44.

Each employee name is listed in a payroll register along with

a)

Employee number

b)

Marital status

c)

Withholding allowances

d)

All of these

45.

how often a business pays its employees

a)

pay period

b)

each month

c)

pay day

d)

once a week

46.

Why are payroll taxes a liability for a business?

a)

they must be refunded to the vendor

b)

they must be refunded to the customer

c)

they are owed to vendors

d)

they must be paid to the government

47.

form used to determine the amount of income tax withheld from each paycheck

a)

W4

b)

general ledger

c)

payroll register

d)

employee earnings record

48.

social security and medicare are the two ________ taxes

a)

required

b)

state

c)

FICA

d)

highest

49.

Who must pay the FICA taxes?

a)

employees only

b)

employers only

c)

customers

d)

employees and employers

50.

Who must pay income taxes?

a)

employees

b)

employers

c)

employers and employees

d)

customers

51.

tax rate for social security

a)

1.45%

b)

6%

c)

6.2%

d)

.05%

52.

tax rate for medicare

a)

6.2%

b)

5.4%

c)

.8%

d)

1.45%

53.

Where do you get information to prepare payroll checks?

a)

general journal

b)

employee earnings record

c)

payroll register

d)

cash payments journal

54.

the period covered by a salary payment (weekly, biweekly, semimonthly, or monthly)

a)

pay period

b)

payroll register

c)

date

d)

salary

55.

If you are paid monthly, how many paychecks will you receive a year?

a)

12

b)

24

c)

26

d)

52

56.

If you are paid weekly, how many paychecks will you receive?

a)

12

b)

24

c)

26

d)

52

57.

If you are paid bi-weekly, how many paychecks will you receive?

a)

12

b)

24

c)

26

d)

52

58.

If you are paid bi-monthly, how many paychecks would you receive in a year?

a)

12

b)

24

c)

26

d)

52

59.

If you are paid every Friday, what is your pay period?

a)

Weekly

b)

Bi-weekly

c)

Bi-monthly

d)

Monthly

60.

If you are paid every other Friday, what is your pay period?

a)

Weekly

b)

Bi-weekly

c)

Bi-monthly

d)

Monthly

61.

If you are paid on the 5th and the 20th, what is your pay period?

a)

Weekly

b)

Bi-weekly

c)

Bi-monthly

d)

Monthly

62.

If you are paid on the 15th, what is your pay period?

a)

Weekly

b)

Bi-weekly

c)

Bi-monthly

d)

Monthly

63.

The employee that prepares payroll is called a(n):

a)

Payroll clerk

b)

Accounting clerk

c)

Accounts Payable clerk

d)

Paycheck writer

64.

An employee that sells cars, probably gets paid

a)

hourly wage

b)

commission

c)

piece rate

d)

salary

65.

An employee at a manufacturing plant that gets paid per item they assemble gets paid

a)

hourly

b)

salary

c)

commission

d)

piece rate

66.

An employee that clocks in at 7:58 am and clocks out for lunch at 12:09 will get paid for how many hours?

a)

4.5

b)

4.25

c)

4

d)

3.75

67.

An employee who makes $20 an hour will earn _____ for any hours worked over 40.

a)

$10

b)

$20

c)

$30

d)

$40

68.

Wauseon's local income tax rate is

a)

0%

b)

.5%

c)

1%

d)

1.5%

69.

All States collect an income tax

a)

True

b)

False

70.

Charitable contributions to the United Way would be an example of

a)

voluntary deduction

b)

involuntary deduction

c)

allowance

d)

withholding

71.

A form that summarizes info about employee’s earnings for each pay period.

a)

Payroll Register

b)

Pay Check

c)

Earnings Record

d)

Payroll Record

72.

A record that contains all payroll information for each employee

a)

Payroll Register

b)

Pay Check

c)

Earnings Record

d)

Payroll Record

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